Jamaica's Tax Administration announced on 13 April 2026 that the income tax threshold increased to JMD 1,902,360 from JMD 1,799,376, effective 1 April 2026. This delivers annual savings of JMD 25,518 to taxpayers, while pensioners aged 65 and over can claim combined exemptions totalling JMD 2,376,654.
Jamaica’s tax administration (TAJ) announced on 13 April 2026 that the Income Tax threshold (tax-free amount) was increased to JMD 1,902,360, up from JMD 1,799,376, effective 1 April 2026.
This adjustment is in keeping with the announcement made by the Minister of Finance and the Public Service, the Hon. Fayval Williams, during the 2025 Budget Presentation. At that time, it was outlined that the annual Income Tax threshold would be progressively increased over the period 2025 through 2028, with a target of reaching JMD 2,000,000.
As the new threshold took effect on 1 April 2026, the effective tax-free amount for the full twelve months of 2026 is JMD 1,876,614.
This represents the second phase of the planned increases and results in higher periodic tax-free amounts for both employed and self-employed individuals, as follows:
- Weekly: JMD 36,583.85 (previously JMD 34,603)
- Fortnightly: JMD 73,234.90 (previously JMD 69,307.26)
- Monthly: JMD 158,530 (previously JMD 149,948)
The latest increase in the Income Tax threshold will result in savings to individuals of JMD 25,518 annually, or about JMD 490.73 weekly, JMD 981.46 fortnightly and JMD 2,126.5 monthly.
The tax administration is also reminding pensioners and Golden Agers (persons aged 65 and over) that they are entitled to additional exemptions of JMD 250,040 for each category. Accordingly, an individual who receives a pension from an approved pension scheme and is also 65 years or older will benefit from a combined tax-free income of JMD 2,376,654 in 2026 before any income tax becomes applicable.
TAJ encourages taxpayers and employers to take note of these changes and to adjust their financial planning and payroll systems accordingly.
